There is no shortage of stories about how entrepreneurship and innovation can spur economic growth under the right conditions, but another intriguing, and often overlooked, characteristic of entrepreneurship is its ability to uplift underserved, diverse communities.
In fact, entrepreneurship not only plays a key role in bringing social issues to the forefront, it often removes barriers and creates a network of bridges that empower communities to thrive. This impact can grow exponentially when entrepreneurs have access to a diverse range of support––education, networks, funding, and mentorship.
But this is where the playing field isn’t always so even.
Diversifying Entrepreneurial Endeavors
Though the lines of what defines entrepreneurship may be a bit murky, at its core, it involves an individual or small group introducing something new and original to solve a specific problem, often one they’ve experienced firsthand. And who better to lead the charge on bringing these solutions into existence than those embedded in the communities they are aiming to serve? This cultivates diversity in business and facilitates the creation of tailor-made solutions to meet the needs of diverse, often underserved communities.
These entrepreneurs are the experts on their communities’ needs, whether it is a local market that carries culturally relevant food, services for the unhoused or a piece of technology that supports caregivers––the best solutions come from within the impacted communities.
Naturally, however, rare is the entrepreneur who comes embedded with expertise in all areas of business growth and development, capital to build out their concept and a network of the right connections. In fact, according to a study by Guidance Financial, less than 50% of entrepreneurs have bachelor’s degrees, and even fewer hold degrees in business. And, according to Intuit, inflation and cash flow were among the top concerns of small business owners.
This is where diversified forms of support become vitally important to fueling a community’s entrepreneurial development. This might be in the form of multi-lingual educational programming, free or low-cost accelerators, grants and funding, or access to mentors.
Paving Pathways to Opportunities
Some industries are harder to break into than others. Some communities are flush with resources where others are barren. And every entrepreneur has varying degrees of access to resources.
To begin to level the playing field and bring more opportunities where they don’t currently exist, it requires collaboration––collaboration between community organizations, knowledge partners, corporate sponsors, and mentors. For instance, with the help of community partner Chicanos Por La Causa, SEED SPOT recently provided more than 30 free, dual-language classes through our annual Startup Spring Training event series. And with the support of sponsors, we doled out $50,000 in microgrants to startups that participated.
When diverse resources come together to support entrepreneurship, it also helps reach pockets of future founders who may otherwise go unreached. In turn, this uplifts underserved communities and brings innovation to sectors of business that have traditionally been more challenging to break into or assemble resources around.
Take community health for example. Entrepreneurs who are working to address health inequities are often closest to the problem and the solution, and don’t typically have the space or capacity for innovation. Luckily, there are organizations that have earmarked resources specifically for startups in this industry.
For instance, the Volunteers of America (VOA) Futures Fund Community Health Incubator, supported by The Humana Foundation, incubates entrepreneurial solutions to food insecurity, financial independence, housing stability, healthcare access, and early childhood development. SEED SPOT joined the partnership in 2023 to execute the program’s training and mentorship, augmenting VOA’s vast national network of pilot and partnership opportunities, and The Humana Foundation’s funding.
Retail is another nuanced industry that comes with some unique challenges. Made possible by funding from Walmart through The Walmart.Org Center for Racial Equity, SEED SPOT launched a fully funded program to help startups in consumer packaged goods scale into mass retail.
Diverse partnerships like these can both reach and teach entrepreneurs who might otherwise be passed over for support programs available to their peers. Customizing solutions and recruitment strategies to diverse founders’ needs opens up opportunities often overlooked by more conventional programs.
Lasting Impact of Diverse Entrepreneurship
When all entrepreneurs and “future-preneurs” have access to diverse support, it breeds innovation and creativity, builds bridges to untapped markets and brings varied perspectives and problem-solving approaches to the equation.
Even if these startup founders are not focused specifically on a social impact issue, their businesses inevitably help support other underrepresented communities. Often it can lead to job creation and economic empowerment within the communities they serve. They also tend to form partnerships with other like-minded ventures in their region to help build brand awareness or expand their buying power.
It can also aid in wealth distribution and community development as entrepreneurs reinvest back in their communities. For instance, many successful women founders and entrepreneurs of color have gone on to create funds and scholarships for those in their community, further fueling the future of entrepreneurship.
Indeed, entrepreneurship can be a vehicle for uplifting these underserved populations. The founders, ideas and solutions are there, embedded within the communities. They just need to be excavated, and that’s where diverse partnerships, collaborations and support plays a crucial role.
Tristan Gandolfi is the vice president of programs at SEED SPOT where she oversees the general management of all program areas, which includes program development, delivery, and evaluation, as well as fundraising, budget setting, knowledge management, and all external relationship management.
